Price stops must be introduced

Márton Nagy; price stop; price cap; recession; war; economic growth;

2022-08-31 22:25:00

The gas routes of the government members in Moscow are still shrouded in darkness, the Minister of Economic Development is counting on 4-5 percent Hungarian economic growth despite the energy emergency.

It is becoming more and more expensive to maintain them, so sooner or later price caps, otherwise known as price stops, will have to be removed, stated the InfoRadio Minister of Economic Development Márton Nagy in his program Aréna. According to him, these government measures have “fulfilled their role”, as they are intended to deal with temporary difficulties.

The head of the ministry added that these price caps were put into effect because the economy was hit by a price shock, which, however, got bigger with the war. At the same time, he admitted that the energy crisis is still going on and prices are rising. Inflation has not peaked either, and there is no end in sight. In this regard, he noted that the government’s goal is to get out of the energy emergency as soon as possible, because rising energy prices fuel inflation.

Márton Nagy did not reveal any details about his recent trip to Moscow despite the fact that Minister of Foreign Affairs and Trade Péter Szijjártó, who held talks in the Russian capital in June, announced shortly before the program that an agreement had been reached with Gazprom on the delivery of gas quantities exceeding previous contracts. The Minister of Economic Development spoke about the fact that he also visited Molszkva in the gas case, but the results of that will still have to wait for weeks.

The politician also criticized the EU’s price cap ideas during the almost obligatory criticism of Brussels for members of the government, although he himself does not know the details. He sees the signs of a war economy in several European countries, and paints a picture of “state-mandated, mandatory consumption restrictions” that Brussels must solve “because of the sanctions policy”. He added that there is a threat of recession in Europe, but “the Hungarian economy is very strong”, and the annual growth in 2022 could be between 4-5 percent.


Source: Népszava by nepszava.hu.

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